The Global Fund said it worked with partners to establish a “new framework to systematically organize the purchase of massive amounts of mosquito nets, anti-HIV drugs and other products that will improve delivery and make significant savings. In a first step, the Global Fund will sign contracts with 7 manufacturers “for the largest-ever bulk purchase of mosquito nets treated with insecticide, with immediate costs savings of  US$51.2 million, and projected overall savings of US$140 million for the Global Fund over two years.” The announcement noted that the initial contracts, for 90 million mosquito nets, will be part of an overall purchase of 190 million nets by partners in 2014. The new framework reduces base prices across the board, for all partners, and also reduces bottlenecks and shortages in countries where malaria threatens the lives of millions of children under the age of 5. The Global Fund said that the new framework emerged from a special partnership launched in May 2013 between the Global Fund, the UK’s Department for International Development, the U.S. President’s Malaria Initiative and UNICEF, who collectively represent about 87 percent of the purchases of insecticide-treated nets. Other partners also participated, including the Clinton Health Access Initiative (CHAI), Roll Back Malaria Partnership and the office of Raymond G. Chambers, the UN Secretary-General’s Special Envoy for Financing the Health MDGs and for Malaria…

http://www.theglobalfund.org/en/mediacenter/newsreleases/2013-11-05_Breakthrough_on_Procurement_to_Save_USD_140_Million/